Businesses in Difficulty: Take Advantage of the Long-Term Partial Unemployment Program (APLD-R)

What is APLD-R?

The long-term partial unemployment recovery program is a measure created in response to the significant number of corporate restructurings and bankruptcies. It is therefore designed to prevent layoffs for economic reasons and to protect jobs.

This program allows companies facing financial difficulties to reduce or suspend their employees' work while preserving their jobs.

An employee placed on a part-time schedule receives compensation from the employer to offset the loss of wages. In return, the employer receives a partial reimbursement from the government and Unédic in the form of a subsidy.

According to the Ministry of Labor, the implementing decree—which we are awaiting publication of—will provide the following details:

• Companies will be able to take advantage of the program for 18 months, whether consecutive or not, over a reference period of 24 consecutive months;
• When an employer enrolls employees in the APLD-R plan, this will allow for the payment of a compensation to the employee equivalent to 70 % of his or her previous gross compensation (compensation increased to 100 % of net pay if the employee begins training during the period of partial unemployment);
• the amount of the’allowance The amount paid to the employer will be set at 60 % of the employee's previous gross pay.

What are the conditions?

An employer wishing to take advantage of this program must, at its discretion, enter into and have the following approved by the prefect of its department:

• a collective bargaining agreement at the local, company, or group level;
• an extended industry-wide collective bargaining agreement.

The implementation of the APLD-R may also result from the ratification of a unilateral instrument implementing a extended industry-wide collective bargaining agreement. This document is prepared by the employer.

This agreement must specify:

• the period of its application ;
• the business activities and employees affected by the APLD ;
• the work hour reductions that may give rise to compensation;
• specific commitments, particularly regarding job retention and vocational training (It is necessary to draft a document listing these commitments, after consulting the CSE: CSE: Social and Economic Committee (if applicable).

Finally, the collective agreement must specify the skills development initiatives offered to employees on APLD leave.

The implementing decree provides that the collective agreement (or unilateral document) submitted to the administration must include a diagnosis including the following information:

• details of the sustained decline in business experienced by the company;
• the «projected business outlook»;
• employees' skill needs.

When will this measure take effect?

The APLD-R will not be applicable only after the publication of its implementing decree.

This measure will remain in effect until February 28, 2026.